AP NEWS
Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Adaptimmune Reports First Quarter 2019 Financial Results

May 6, 2019

- Clinical update issued in a separate announcement -

- Financial guidance updated: funded into Q3 2020 -

PHILADELPHIA and OXFORD, United Kingdom, May 06, 2019 (GLOBE NEWSWIRE) -- Adaptimmune Therapeutics plc (Nasdaq:ADAP), a leader in T-cell therapy to treat cancer, today reported financial results for the first quarter ended March 31, 2019. Adaptimmune shared a clinical update in a separate release ( https://bit.ly/2IJpltR ).

Financial Results for the three-month period ended March 31, 2019

-- Cash / liquidity position: As of March 31, 2019, Adaptimmune had cash and cash equivalents of $49.9 million and Total Liquidity1 of $168.2 million. -- Revenue: Revenue for the three-month period ended March 31, 2019 was nil, compared to $8.2 million for the same period in 2018. No revenue has been recognised for the three months ended March 31, 2019 as the NY-ESO SPEAR T-cell transition program and the PRAME pre-clinical development program were completed in 2018, and work has not commenced on the third target nominated by GSK under the Collaboration and License Agreement. -- Research and development (“R&D”) expenses: R&D expenses for the three-month period ended March 31, 2019 were $22.0 million, compared to $25.7 million for the same period of 2018; this decrease being primarily due to a reduction in expenditure associated with NY-ESO, which was transferred to GSK on July 23, 2018. -- General and administrative (“G&A”) expenses: G&A expenses for the three-month period ended March 31, 2019 were $11.8 million, compared to $11.2 million for the same period of 2018. -- Other income, net: Other income for the three-month period ended March 31, 2019 was $5.4 million, compared to $7.1 million for the same period of 2018. Other income primarily comprises unrealized foreign exchange gains, which fluctuate depending on exchange rate movements and the amount of foreign currency assets and liabilities. -- Net loss: Net loss attributable to holders of the Company’s ordinary shares for the three-month period ended March 31, 2019 was a loss of $27.4 million, ($(0.04) per ordinary share) compared to a loss of $21.1 million ($(0.04) per ordinary share) in the same period of 2018.

Financial guidanceThe Company believes that its existing cash, cash equivalents and marketable securities will fund the Company’s current operations into the third quarter of 2020.

1 Total liquidity is a non-GAAP financial measure, which is explained and reconciled to the most directly comparable financial measures prepared in accordance with GAAP below.

About Adaptimmune Adaptimmune is a clinical-stage biopharmaceutical company focused on the development of novel cancer immunotherapy products for cancer patients. The Company’s unique SPEAR (Specific Peptide Enhanced Affinity Receptor) T‑cell platform enables the engineering of T-cells to target and destroy cancer across multiple solid tumors. For more information, please visit http://www.adaptimmune.com.

Forward-looking statementsThis release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements involve certain risks and uncertainties. Such risks and uncertainties could cause our actual results to differ materially from those indicated by such forward-looking statements, and include, without limitation: the success, cost and timing of our product development activities and clinical trials and our ability to successfully advance our TCR therapeutic candidates through the regulatory and commercialization processes. For a further description of the risks and uncertainties that could cause our actual results to differ materially from those expressed in these forward-looking statements, as well as risks relating to our business in general, we refer you to our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 27, 2019, and our other SEC filings. The forward-looking statements contained in this press release speak only as of the date the statements were made and we do not undertake any obligation to update such forward-looking statements to reflect subsequent events or circumstances.

Total Liquidity (a non-GAAP financial measure)

Total Liquidity (a non-GAAP financial measure) is the total of cash and cash equivalents and marketable securities. Each of these components appears in the consolidated balance sheet. The U.S. GAAP financial measure most directly comparable to Total Liquidity is cash and cash equivalents as reported in the consolidated financial statements, which reconciles to Total Liquidity as follows (in thousands):

March 31, December 31, 2019 2018 --------- --------- Cash and cash equivalents $ 49,917 $ 68,379 Marketable securities 118,241 136,755 - ------- - ------- Total Liquidity $ 168,158 $ 205,134 - ------- - -------

The Company believes that the presentation of Total Liquidity provides useful information to investors because management reviews Total Liquidity as part of its management of overall liquidity, financial flexibility, capital structure and leverage.

Condensed Consolidated Statement of Operations(unaudited, in thousands, except per share data)

Three months ended March 31, -------------------------------- 2019 2018 ------------- - ------------- - Revenue $ — $ 8,196 Operating expenses Research and development (22,019 ) (25,732 ) General and administrative (11,773 ) (11,204 ) - ----------- - - ----------- - Total operating expenses (33,792 ) (36,936 ) - ----------- - - ----------- - Operating loss (33,792 ) (28,740 ) Interest income 952 659 Other income, net 5,430 7,130 - ----------- - - ----------- - Loss before income taxes (27,410 ) (20,951 ) Income taxes (2 ) (127 ) - ----------- - - ----------- - Net loss attributable to ordinary shareholders $ (27,412 ) $ (21,078 ) - ----------- - - ----------- - Net loss per ordinary share – Basic and diluted Basic and diluted $ (0.04 ) $ (0.04 ) Weighted average shares outstanding: Basic and diluted 627,945,243 562,381,995

Condensed Consolidated Balance Sheets(unaudited, in thousands, except share data)

March 31, December 31, 2019 2018 ------------ ------------ Assets Current assets Cash and cash equivalents $ 49,917 $ 68,379 Marketable securities - available-for-sale debt securities 118,241 136,755 Accounts receivable, net of allowance for doubtful accounts of $0 and $0 — 192 Other current assets and prepaid expenses (including current portion of clinical 32,143 25,769 materials) - -------- - - -------- - Total current assets 200,301 231,095 Restricted cash 4,473 4,097 Clinical materials 3,972 3,953 Operating lease right-of-use assets, net of accumulated amortization of $656 24,462 — (2018: $0) Property, plant and equipment, net of accumulated depreciation of $18,083 (2018: 35,703 36,118 $15,924) Intangibles, net of accumulated amortization of $1,411 (2018: $1,218) 1,529 1,473 - -------- - - -------- - Total assets $ 270,440 $ 276,736 - -------- - - -------- - Liabilities and stockholders’ equity Current liabilities Accounts payable 5,391 4,083 Operating lease liabilities, current 2,217 — Accrued expenses and other accrued liabilities 15,827 20,354 - -------- - - -------- - Total current liabilities 23,435 24,437 Operating lease liabilities, non-current 26,779 — Other liabilities, non-current 571 5,414 - -------- - - -------- - Total liabilities 50,785 29,851 Stockholders’ equity Common stock - Ordinary shares par value £0.001, 701,103,126 authorized and 628,294,702 issued and outstanding (2018: 701,103,126 authorized and 940 939 627,454,270 issued and outstanding) Additional paid in capital 577,722 574,208 Accumulated other comprehensive loss (13,096 ) (9,763 ) Accumulated deficit (345,911 ) (318,499 ) - -------- - - -------- - Total stockholders’ equity 219,655 246,885 Total liabilities and stockholders’ equity $ 270,440 $ 276,736 - -------- - - -------- -

Condensed Consolidated Cash Flow Statement(unaudited, in thousands)

Three months ended March 31, ------------------------ 2019 2018 --------- - --------- - Cash flows from operating activities Net loss $ (27,412 ) $ (21,078 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 1,828 1,740 Amortization 167 143 Share-based compensation expense 3,479 4,672 Realized loss on available-for-sale debt securities — 1,163 Unrealized foreign exchange gains (5,095 ) (7,862 ) Other (39 ) 124 Changes in operating assets and liabilities: Increase in receivables and other operating assets (6,659 ) (10,179 ) Increase in non-current operating assets (19 ) (123 ) Decrease in payables and deferred revenue (2,453 ) (15,879 ) - ------- - - ------- - Net cash used in operating activities (36,203 ) (47,279 ) Cash flows from investing activities Acquisition of property, plant and equipment (904 ) (1,904 ) Acquisition of intangibles (205 ) (10 ) Maturity or redemption of marketable securities 22,669 28,043 Investment in marketable securities (3,904 ) (12,490 ) - ------- - - ------- - Net cash provided by investing activities 17,656 13,639 Cash flows from financing activities Proceeds from exercise of stock options 36 1,534 - ------- - - ------- - Net cash provided by financing activities 36 1,534 Effect of currency exchange rate changes on cash, cash equivalents and restricted 425 1,545 cash - ------- - - ------- - Net decrease in cash and cash equivalents (18,086 ) (30,561 ) Cash, cash equivalents and restricted cash at start of period 72,476 88,296 - ------- - - ------- - Cash, cash equivalents and restricted cash at end of period $ 54,390 $ 57,735 - ------- - - ------- -

Adaptimmune Contacts:

Media Relations:

Sébastien Desprez — VP, Communications and Investor RelationsT: +44 1235 430 583M: +44 7718 453 176 Sebastien.Desprez@adaptimmune.com

Investor Relations:

Juli P. Miller, Ph.D. — Director, Investor RelationsT: +1 215 825 9310M: +1 215 460 8920 Juli.Miller@adaptimmune.com